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2022 International Conference on Digital Transformation and Intelligence (ICDI)

How Social Influence and Hedonic/Utilitarian


Outcome Expectations Affect Continuance Intention
to Play Online Games
Tze Wei Liew Chin Lay Gan Su-Mae Tan
Faculty of Business Faculty of Business Faculty of Information Science and
Multimedia University Multimedia University Technology
Melaka, Malaysia Melaka, Malaysia Multimedia University
twliew@mmu.edu.my gan.chin.lay@mmu.edu.my Melaka, Malaysia
smtan@mmu.edu.my
Yoke Pei Koh Sook Fern Yeo
Faculty of Business Faculty of Business
2022 International Conference on Digital Transformation and Intelligence (ICDI) | 979-8-3503-9700-0/22/$31.00 ©2022 IEEE | DOI: 10.1109/ICDI57181.2022.10007251

Multimedia University Multimedia University


Melaka, Malaysia Melaka, Malaysia
yokepeik@gmail.com yeo.sook.fern@mmu.edu.my

Abstract—While online gaming has become immensely ARPG, and More), Simulation and sports, Puzzlers and party
popular today, game developers and marketers face stiff games, Action-adventure Survival and horror, and Platformer.
competition. For gaming industries to remain profitable From the device perspective, online games can be
despite high development costs, they must promote players' categorized into Mobile Gaming, Console Gaming, and PC
continuance intention to play online games to accrue revenues Gaming. There are already 2.9 billion people playing online
via advertisement, subscription, and microtransactions. games worldwide at the end of 2021, and the profits
Drawing on the Social Cognitive Theory, the present research generated by the game market reached USD 175.8 billion in
examines how social influence (Critical Mass and Subjective
2021, up significantly from USD 144.4 billion in 2019 [3].
Norm) and personal cognition (Hedonic Outcome Expectations
Profits will grow to USD 204.6 billion in 2023. Furthermore,
and Utilitarian Outcome Expectations) affect the continuance
intention to play online games. Based on 150 valid responses
the Southeast Asian region constitutes the fastest-growing
from online gamers in Malaysia, the PLS-SEM analysis reveals gaming market and has significantly expanded since the
that Hedonic Outcome Expectations and Utilitarian Outcome COVID-19 pandemic. Malaysia, Singapore, Vietnam,
Expectations drive continuance intention to play online games. Thailand, Indonesia, and the Philippines have generated
Continuance intention to play online games is not influenced by USD 4.3 billion in profits for the mobile gaming division
Critical Mass and Subjective Norm. Implications for research, alone during the 2019-2020 period [58].
game designers, and game marketers are discussed in this
While the foregoing denotes prospects for the online
paper.
gaming industry to generate lucrative revenues, sustaining
Keywords—online games, continuance intention, social long-term earnings is challenging. Because the online
influence, hedonic/utilitarian, critical mass, subjective norm gaming enterprise is highly competitive, only a fraction of
online game products overcome the intrinsically steep
I. INTRODUCTION production costs to generate profits. Online game providers
accrue income via advertisement, subscription, and
Online games are internet-based, where players utilize
microtransactions concerning in-game virtual items. Thus,
server platforms to play, engage, compete, and collaborate
beyond users' initial acceptance or first-time interaction with
with other gamers from all over the world, anywhere,
online games, continuance intention to play online games is
anytime [1-2]. With digital devices and connectivity
critical for sustaining profits. It is imperative for online game
permeating today's society, online gaming has become
companies to prime long-term relationships while bolstering
immensely popular entertainment. This is attributed to the
gaming engagement and loyalty among current clients. This
widespread adoption of personal computers and smartphones,
approach is less costly than attracting new ones. Hence,
complemented by rapid technological advancement
understanding the factors that drive continuance intention to
concerning hardware, software, and network infrastructures.
play online games is essential for online game marketers and
Further, online gaming has become interwoven with
designers.
consumer culture. It is often regarded as a socially acceptable
form of entertainment that allows people worldwide to Despite this, relatively less research has examined the
compete or collaborate within the online gaming community, factors driving continuance intention to play online games [1]
thereby bolstering cultural exchange. Thus, the online [4]. Moreover, the existing literature in this research stream
gaming industry has become one of the most profitable is somewhat limited for a few reasons. While the technical
internet-based entertainment businesses, attracting an elements regarding online game adoption tended to be
increasing number of players and providers in recent years. emphasized, the cognitive, affective, and social aspects
contributing to online gaming intention are under-explored.
Online games evolve alongside emerging digital media
Further, research on continuance intention to play online
technologies, leveraging platforms such as gaming consoles,
games has received considerably less attention than initial
mobile applications, social network sites, websites, and
gaming intention or first-time engagement with online games.
AR/VR/MR tools. They spawn various genres such as
Finally, apart from existing works [5-6], research concerning
Sandbox, Real-time strategy (RTS), Shooters (FPS and TPS),
online gaming intention in Malaysia is still scant. This poses
Multiplayer online battle arena (MOBA), Role-playing (RPG,

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2022 International Conference on Digital Transformation and Intelligence (ICDI)

an unfortunate industry-knowledge gap as Malaysia ranks as argues that the continuance intention to play online games
the third largest game market in Southeast Asia, valued at may be influenced by critical mass and subjective norms
USD 786 million as of 2022, and is reputed to retain a (social influence factors) and the players' utilitarian and
booming game production and demand ecosystem [7]. hedonic outcome expectations (personal cognition).
This study aims to bridge the research-practice gap by C. Critical Mass
examining the factors driving continuance intention to play Critical mass is a concept underpinned by the diffusion of
online games in Malaysia. To this end, this study hinges on innovations (DOI) theory. The DOI attempts to explain the
the Social Cognitive Theory (SCT), which asserts that social factors driving the dispersal of novel ideas and technologies
influence and personal cognition drive an individual's and avers that the values of ideas and technologies increase
behavior [8]. The SCT is ideal for this research endeavor alongside the rising number of users [22]. Critical mass
because online gaming entails social encounters within the refers to the point where there is a sufficient number of users
community comprising human players and artificial in-game employing a new idea or technology such that the adoption
characters [4]. The rich social interactions can compel rate becomes self-sustaining. Critical mass has been applied
players to evaluate the social influence and personal to investigate the adoption of smartphones [23], instant
cognition factors, which in turn, influence gaming intentions. messaging services [24], mobile wallets [25], and mobile
II. T HEORETICAL FRAMEWORK social networks [26], including WeChat [24][27], Facebook
and Twitter [28], Instagram [29] and Snapchat [30].
A. Continuance Intention to Play Online Games
Online games are entertainment-oriented information
Continuance behavioral intention defines users' decision systems; therefore, players will be more willing to participate
to continue employing a particular product or service that in an online game if there is a substantial critical mass
extends beyond initial acceptance or preliminary use, [20][31]. The presence of many system users may imply that
fostering long-term user engagement and loyalty [9]. To it is significant, valuable, or entertaining, which eventually
assure the gaming industry's survivability and competitive compels others to adopt the system. Likewise, a substantial
edge in the market, continuance gaming intention is vital for number of peer online players signal to others that an online
maintaining a feasible customer base, driving perpetual game is worth playing. Research has found significant
gaming activity, and forging brand loyalty among existing positive relationships between critical mass and intention to
customers. Recent studies have explored the continual continue playing online games [4][21]. Thus, this study
gaming intention with AR [2][5][10] and online games [4]. predicts that:
B. Social Cognitive Theory (SCT) H1: Critical mass (CM) positively affects continuance
The SCT stems from the social learning model that intention to play online games.
explains human behavior based on the confluence between
D. Subjective Norm
personal cognition (e.g., outcome expectations, self-efficacy,
beliefs) and environmental factors [8]. This theory is Subjective norm is a derivative construct of the Theory of
significant in asserting that the environment does not solely Planned Behaviour (TPB) [32]. The TPB model notes that
determine an individual's behavior; rather, a bi-directional belief components shape behavioral intention: attitude,
relationship between behavior and environment exists where subjective norms, and perceived control. In particular,
both factors constantly affect each other. People actively subjective norm denotes how the opinions of significant
participate in shaping the environment that affects their others influence an individual's willingness to engage in a
development and growth and modify their behaviors based behavior. Based on whether most people approve or oppose
on observing others' behaviors and their consequences. the behavior, subjective norm exudes social expectations for
an individual to conform to certain expected behaviors to
The SCT has been adopted to explore user behaviors in assure harmonious relationships or avoid being treated with
various IS domains, including seniors' intention to use the hostility and outcasted.
internet [11], people's intention to share their blogs [12],
social media usage [13], and knowledge sharing in virtual In this study, subjective norm assesses players'
communities [14]. Additionally, the SCT has been employed impressions that their significant others believe they should
in research for disentangling user behavioral intentions in play online games. If the players sense that online game
social-centric digital environments, such as users' activities are being endorsed by their close friends, peers, or
engagement with e-participation service platforms [15], family members, they are likely to engage in online games
repeated viewing of live-streaming games [16], online continually. Moreover, online games are social-centric
gaming addictions [17], and adolescents' screen viewing environments, encouraging invites from peers to gamers who,
duration [18]. in turn, may sense social pressure to engage in online games
with their significant others. Contrariwise, perceived
The SCT emphasizes the social influence and cognitive criticism and objection by significant others should hinder
processes, which is relevant to understanding players' the continuance intention to play online games. The extant
continuance intention to play online games that are literature indicates that subjective norm is positively related
inherently imbued with social interactions among players to online gaming intentions [4][20][33-36]. Hung et al. [37]
and game characters. Scholars have distinguished social found that subjective norm positively affects continuance
influence agencies as critical mass and subjective norms — intention to use mobile augmented reality for entertainment
with this distinct conceptualization adopted in research purposes. Hence, the following hypothesis is formed:
concerning gaming intentions [4][19-21]. These two social
influence constructs are further discussed in the following H2: Subjective norm (SN) positively affects continuance
sections. Online gamers are simultaneously impacted by their intention to play online games.
cognition and environmental surroundings. Thus, this study

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2022 International Conference on Digital Transformation and Intelligence (ICDI)

E. Utilitarian and Hedonic Outcome Expectations III. METHODOLOGY


Outcome expectations refer to the expected consequences A. Instrument
of engaging in a specific behavior [8]. This notion relates to
the SCT insofar as people's commitment to a certain This study's questionnaire consists of two sections: 1)
behavior depends on individual and subjective outcome demographics and 2) subscales assessing critical mass,
expectations, which are strongly influenced by prior subjective norm, utilitarian outcome expectations, hedonic
experiences and anticipations concerning the consequences outcome expectations, and continuance intention to play
of their actions. Scholars have argued that consumption online games. The research variables are referenced from
intents are driven by users' experiential effects comprising established research [4], with each item assigned to a 5-point
utilitarian and hedonic outcomes [38]. Utilitarian Likert scale ranging from (1) strongly disagree to (5)
characteristics represent goal-oriented and instrumental strongly agree. The reliability analyses affirm that all
values, while hedonic factors fulfill expectations for constructs were reliable, with Cronbach's α values exceeding
playfulness, fun, and enjoyment. Utilitarian and hedonic 0.7. Table I shows the variables and the survey items.
aspects have been shown to affect continuance intention to
TABLE I. RESEARCH VARIABLES AND ITEMS
use location-based applications [39], social apps [40],
smartwatches [41], video-on-demand services [42], and Variables Items
social media [43]. Critical Mass CM1 Most people in my group play an online
game frequently.
Noteworthy, online gaming activities are considered
consumption behaviors [4][44-45]. Online gaming activities CM2 Most people in my community play an
online game frequently.
can render hedonic experiences to players, that is, inducing a
sense of pleasure, fun, and leisure [46]. Online game traits CM3 Most people in my class/office play an
can evoke these hedonic outcome expectations via attractive online game frequently.
visuals, engaging game-play, interesting plots, and Subjective SN1 People important to me support me playing
opportunities to form relationships with peer gamers and Norm online games.
virtual characters. Moreover, online games, specifically in
SN2 People who influence my behaviour want me
the casual genre, can be regarded by players as a safe and to play online games instead of any
cheerful haven where they feel relaxed, worry-free, and alternative activities.
evade responsibilities [19]. Empirical research has confirmed
the positive relationship between hedonic outcome SN3 Most people who are important to me would
think that playing online games is a wise
expectations and continuance intention to play online games idea.
[4][44]. Hence, the following prediction is formulated:
Utilitarian UOE1 If I play online games, my colleagues will
H3: Hedonic outcome expectations (HOE) positively Outcome perceive me as competent.
affect continuance intention to play online games. Expectations
UOE2 If I play online games, I will increase my
Utilitarian outcome expectations represent online gamers' sense of accomplishment.
hopes of getting social status and extrinsic rewards, such as UOE3 If I play online games, I will increase my
money, experience points, prizes, and upgrades from chances of obtaining an upgrade.
effectively and efficiently completing tasks in online games.
UOE4 If I play online games, I will be seen as
Players may be motivated to continue engaging in online having higher status by my peers.
games continually, driven by their perpetual quest to achieve
social prestige and rewards within the online gaming UOE5 If I play online games, I will increase my
environment. Studies have found that utilitarian outcome chances of getting a reward (e.g. virtual
currencies and experience points).
expectations positively correlate with continuance online
gaming intentions [4][44]. Therefore, this study assumes that: Hedonic HOE1 If I play online games, I will experience
Outcome enjoyment.
H4: Hedonic outcome expectations (HOE) positively Expectations
affect continuance intention to play online games. HOE2 If I play online games, I will feel pleasure.
HOE3 If I play online games, I will have fun.
F. Conceptual Framework
Based on the theoretical and literature review, the Continuance CI1 I plan to play online games in the future.
intention to
derived hypotheses form this study's conceptual framework, play online CI2 I intend to continue playing online games in
illustrated in Fig. 1. games the future.
CI3 I expect my play of online games to continue
in the future.

B. Data Collection and Sample


This study adopted a convenience sampling approach,
with the online survey broadcasted in social media groups of
gamer communities. A total of 150 usable responses were
acquired after discarding those with incomplete or invalid
data. The responses comprised 36.7% males and 63.3%
females, with the majority aged between 20 and 29 (76.7%).
Most respondents were Chinese (85.8%), and about 10.7%
Fig. 1. Conceptual framework of this study reported Malays or Bumiputras (10.7%). Concerning

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2022 International Conference on Digital Transformation and Intelligence (ICDI)

educational level, most of them were pursuing bachelor's TABLE III. CONVERGENT VALIDITY
degrees (67.3%), while 20% were in diploma programs, and Constructs Item Loading AVE CR
about 9% indicated undergoing O-level education. The top Continuance Intention (CI) CI1 0.957 0.915 0.970
three most often played online games are Action, Adventure, CI2 0.958
and Classic or Puzzle. Smartphones are the most commonly CI3 0.954
used for online gaming, followed by laptops, desktops, and
Critical Mass (CM) CM1 0.912 0.807 0.926
tablets. Most respondents (30%) had played online games for
CM2 0.920
more than eight years. About 24% had played for 3-4 years,
CM3 0.862
while 16.7%, 13.3%, and 8.7% had played online games for
Hedonic Outcome HOE1 0.917 0.793 0.920
1-2 years, 5-6 years, and 7-8 years, respectively. The
Expectations (HOE) HOE2 0.843
smallest fraction, 7.3%, had played online games for less
than a year. All respondents reported playing online games at HOE3 0.910
home; the survey shows that university/college campuses Subjective Norm (SN) SN1 0.884 0.822 0.933
and cyber cafes are also popular places for online gaming SN2 0.924
activities. SN3 0.912
Utilitarian Outcome UOE1 0.842 0.668 0.910
IV. DATA ANALYSES AND RESULTS Expectations (UOE) UOE2 0.799
Confirmatory factor analysis was applied to test the UOE3 0.802
model's predictive effect with partial least squares (PLS) by UOE4 0.870
using SmartPLS 4.0.8.2 version. Path coefficients and model UOE5 0.772
parameters were evaluated using the PLS-SEM algorithm on
the measurement model to determine the items' reliability
[47]. To ascertain the discriminant validity of the constructs, B. Discriminant Validity
the hetrotriat-monotriat ratio of correlations (HTMT) was In the second stage, discriminant validity was assessed
applied [48-50]. The bootstrapping method was then using the HTMT criterion. Franke and Sarstedt [49] and
executed to observe the structural model coefficients' Henseler et al. [50] recommended constructs' HTMT values
significance. to be less than 0.85 (stricter criterion) or 0.90 (more lenient
Since data was collected in a single questionnaire, issues criterion) to indicate that the constructs are distinct from each
of single-source bias were tested using the full collinearity other. Table IV shows all HTMT values below 0.85,
method [51-52]. All constructs, including the dependent indicating acceptable discriminant validity criterion has been
variable, were regressed against a common variable to met. In sum, both convergent and discriminant validity tests
determine their variance inflation factors (VIF). All indicated that the constructs in the measurement model are
constructs' VIF values are less than 3.3; hence single-source valid and reliable.
bias is deemed not a serious issue for this study's data [51].
TABLE IV. DISCRIMINANT VALIDITY (HTMT RATIO)
Table II presents the full collinearity test results.
1 2 3 4 5
TABLE II. FULL COLLINEARITY TEST
1. Continuance Intention
CI CM HOE SN UOE (CI)
2. Critical Mass (CM) 0.353
VIF 1.593 1.336 1.384 1.618 1.868
Note: CI = Continuance Intention; CM = Critical Mass; HOE = Hedonic 3. Hedonic Outcome 0.451 0.403
Outcome Expectation; SN = Subjective Norm; UOE = Utilitarian Outcome Expectations (HOE)
Expectation. 4. Subjective Norm (SN) 0.475 0.492 0.309
5. Utilitarian Outcome 0.604 0.390 0.506 0.614
Expectations (UOE)
A. Measurement Model
The measurement model was tested for its validity and
reliability following the guidelines of Anderson and Gerbin C. Structural Model – Hypothesis testing
[53] and Hair et al. [47] using a 2-stage approach. Hair et al. It has been asserted that for a model to be multivariate
[47] suggested that the item loadings should be greater than normal, its multivariate skewness should be between ± 3 and
0.5, the average variance extracted (AVE) should be greater multivariate kurtosis to be between ± 20 [54]. The results
than 0.5, and the composite reliability (CR) should be greater obtained showed that the data is not multivariate normal
than 0.7. As shown in Table III, the results of the PLS based on Mardia's multivariate skewness (β = 9.144, p< 0.01)
algorithm revealed all item loadings to be higher than 0.5, all and Mardia's multivariate kurtosis (β = 49.842, p< 0.01).
AVE values are higher than 0.5, and all CR values are higher Hence, a 5,000 subsamples with a 95% confidence interval
than 0.7, thus suggesting acceptable reliability. bootstrapping procedure was performed for the structural
model's path coefficients, standard errors, t-values, and p-
values to correct the standard error [47]. In addition,
confidence intervals and effect sizes were assessed to
strengthen the significance of the reported p-values [55].
Table V shows the structural model results, while Figure 2
visually illustrates the structural model.

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2022 International Conference on Digital Transformation and Intelligence (ICDI)

TABLE V1. PLS-PREDICT


PLS LM PLS-LM
RMSE RMSE RMSE Q²PREDICT
CI1 0.971 1.030 -0.059 0.294
CI2 0.947 1.004 -0.057 0.284
CI3 0.913 0.965 -0.052 0.285

V. DISCUSSION AND CONCLUSION


The results revealed that social influence factors —
critical mass and subjective norm, do not significantly
influence players' continual online gaming intentions. Thus,
the decision to play online games continually is not
Fig. 2. Structural Model compelled by gamers' observation of the number of existing
Note: *p < 0.05, **p < 0.01. t-values in parentheses. Dashed paths indicate
insignificance relationships (hypotheses) players within the gaming community or by the opinions of
significant others concerning online gaming activities. This
H1 of the current study posits a positive relationship finding diverges from prior research indicating the positive
between Critical Mass (CM) and Continuance Intention to relationships between critical mass and subjective norms and
Play Online Games (CI). The results do not support this continuance intention to play online games [4] and the
hypothesized relationship (β = 0.063, p = 0.221). A similar positive relationship between subjective norm and
result was also obtained for the hypothesized positive continuance intention to employ mobile augmented reality
relationship between Subjective Norm (SN) and CI (β = for entertainment pursuits [37].
0.161, p = 0.059). H3 postulates that there is a positive However, this study coheres with Liang and Yeh's [57]
relationship between Hedonic Outcome Expectation (HOE) data, which show that subjective norm generally does not
and CI. The results affirm this hypothesis (β = 0.182, p < drive continuance gaming intentions. The researchers further
0.05). Similarly, H4 postulates a positive relationship explored potential moderators and found that subjective
between Utilitarian Outcome Expectation (UOE) and CI, and norm only affects intentions to play games continually if the
the results fully endorse this hypothesis (β = 0.367, p < 0.01). players are free from pending tasks. This study's respondents
All four predictors explained 37.2% of the variance in CI (R2 may have incomplete designated chores that elicit higher
= 0.372). psychological anxiety, nullifying the societal pressure to
Recent developments in PLS-SEM proposed a new conform to significant others' opinions when deciding to play
evaluation procedure for analyzing the model's predictive online games continually.
power known as PLS-Predict [56]. PLS-Predict is a holdout Concerning critical mass, Dahabiyeh et al. [20] note that
sample-based procedure used to generate case-level the factor may not be robust in driving online gaming
predictions on a construct level with a fold procedure to intentions; rather, behavioral intentions are motivated by
assess a model's predictive relevant [56]. Using the significant others approving and encouraging gaming
SmartPLS software, the PLS-Predict assessment is calculated activities within their social sphere. Another interesting
with the settings of five folds with five times of repetition. detail is that critical mass has been found to promote actual
Shmueli et al. [56] suggested to first assess the latent playing behavior while not significantly influencing the
(dependent) variable Q2. If the Q2 value is greater than 0, intention to play social games [19]. The authors suggest that
then the items are assessed. The Q2 for the latent variable is players may engage in games as a reaction to the growing
0.318 (greater than zero). The next step would be evaluating number of players, but this behavioral response is triggered
the latent variable item differences (PLS-LM). If all the unconsciously. While the findings above address the
differences (PLS-LM) are lower, there is strong predictive behavioral intention of playing games [19-20], this inference
power. Conversely, if at least 50% is lower, there is medium may apply to the continuance intention to play online games.
predictive power. If less than 50% is lower, there is low That is, players may not always consciously equate a high
predictive power. If none of the differences are lower, the number of players engaging in online games as a cue
predictive relevance of the model is not confirmed. signaling that the online games are worth continually playing.
Shmueli et al. [56] further suggested that if the errors are Further research may clarify the relationship between
symmetrically distributed, then the RMSE criterion is used. perceived critical mass and actual continual online game-
For non-symmetrically distributed errors, the MAE criterion playing behavior in light of evidence that critical mass can
is to be used. The examination of the latent variable shows compel actual playing game behaviors [19].
that the errors are symmetrically distributed; thus, RMSE is This study confirms the positive effects of hedonic and
used. Based on table X, all the errors of the PLS model are utilitarian outcome expectations on the intention to play
lower than the LM model; therefore, we can conclude that online games continually [4][44]. This result implies that
the study's model has strong predictive power. players continually engage in online games to seek pleasure,

TABLE V. STRUCTURAL MODEL RESULTS


Hypothesis Relationships Std Beta Std Error t-values p-values BCI LL BCI UL f2 Effect Decision
1 CM  CI 0.063 0.082 0.770 0.221 -0.067 0.203 0.005 NA Not supported
2 SN  CI 0.161 0.103 1.561 0.059 -0.005 0.336 0.026 NA Not supported
3 HOE  CI 0.182 0.080 2.284 0.011 0.054 0.314 0.040 Small Supported
4 UOE  CI 0.367 0.116 3.154 0.001 0.179 0.561 0.130 Small Supported
Note: Study used 95% confidence interval with a bootstrapping of 5000; NA = Not Applicable; BCI LL = Bias Corrected Interval Lower Limit, BCI UL
= Bias Corrected Interval Upper Limit

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2022 International Conference on Digital Transformation and Intelligence (ICDI)

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